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Highlights

  • M&G reported adjusted operating profit of £378 million in H1 2025, up from £375 million in H1 2024, with growth in Asset Management and Life offsetting lower annuity contributions.

  • Profit after tax rose to £248 million compared with a £56 million loss in H1 2024, supported by favourable investment returns and IFRS 17 impacts.

  • Shareholder Solvency II coverage ratio improved to 230% and the interim dividend was increased to 6.7 pence per share.

M&G plc (LSE:MNG) has announced its financial results for the six months ended 30 June 2025, reporting improved adjusted operating profit and a sharp rise in profit after tax, alongside continued progress in Asset Management and Life operations.

Adjusted operating profit rose to £378 million, compared with £375 million in the first half of 2024, supported by positive underlying business momentum. Asset Management revenue increased to £514 million from £499 million, while costs remained stable at £388 million. This resulted in a cost-to-income ratio of 75%, with higher core results offsetting lower performance fees and investment income.

In Life, PruFund delivered adjusted operating profit of £112 million, up from £98 million a year earlier, while Traditional With-Profits also improved to £120 million compared with £108 million in H1 2024. These gains fully balanced a reduced shareholder annuity contribution of £113 million, down from £132 million last year due to lower returns on excess assets.

Profit after tax rose significantly to £248 million, compared with a £56 million loss in H1 2024. The increase was primarily driven by improved short-term fluctuations in investment returns and mismatches under IFRS 17 accounting.

Operating capital generation stood at £408 million, compared with £486 million in the prior year. The underlying result of £331 million increased by 11%, while operating capital generation excluding new business strain was £443 million, in line with M&G’s 2025–2027 cumulative target of £2.7 billion.

The company’s Solvency II coverage ratio strengthened to 230% at the end of June 2025, up from 223% at 31 December 2024, even after absorbing the 2024 second interim dividend payment in May. The Board declared a first interim dividend of 6.7 pence per share, up from 6.6 pence in H1 2024, payable on 17 October 2025.

Operational Developments

M&G advanced its international expansion strategy and broadened its product range across both Asset Management and Life. In Institutional Asset Management, net outflows in the UK narrowed to £1.3 billion compared with £2.4 billion in H1 2024, while International Institutional Asset Management achieved net inflows of £3.2 billion, up from £1.9 billion a year earlier.

Wholesale Asset Management also improved, delivering net inflows of £0.7 billion versus flat flows in the prior year, supported by demand across Public Fixed Income and Equity funds.

During the period, the group integrated PruFund onto FNZ technology, unlocking access to the £0.7 trillion UK digital platform market. It also completed the launch of a new individual Fixed-Term Annuity product and continued to build capabilities in Bulk Purchase Annuities, targeting the introduction of a With-Profits BPA in early 2026.

The company’s transformation programme has now achieved £213 million in cost savings, representing almost 95% of the upgraded £230 million target.